Subject: CORPORATE WELFARE 2022
The Aiuti-bis Decree raised the limit in which tax-free goods and services can be granted to employees to €600 for 2022, including amounts paid or reimbursed for household utility payments. This limit was later raised to €3,000 by the Aid-quater Decree.
With Circular No. 35/E/2022, the Italian Revenue Agency provided some clarifications on the new rules on corporate welfare. In particular, for 2022 only, the amounts paid or reimbursed for the payment of household utilities, i.e. those relating to real estate for residential use owned or held by the employee, his spouse or family members are included, regardless of whether or not they have established residence or domicile there. This includes household utilities registered to the condominium (e.g. water or heating) and those for which, although the utilities are registered to the owner of the property (landlord), the lease contract expressly provides for a form of analytical and not lump-sum charge by the employee payable (tenant) or his/her spouse and family members. Fringe benefits also include goods and services provided to the employee’s spouse or family members indicated in Article 12, Tuir, as well as goods and services for which the right to obtain them from third parties is conferred.
|Subjective scope||The provision applies to holders of employment income and income assimilated to employment income (such as co.co.s and directors).|
|Fringe benefit may also be paid by the employer ad personam (not necessarily to everyone).|
|Objective scope||Also included are sums paid or reimbursed to workers for the payment of water, electricity and gas household utilities.|
|The maximum limit of non-competition to income (non-taxability) is raised from €258.23 to €3,000 for 2022.|
|This also includes goods sold and services rendered to the employee’s spouse or family members specified in Article 12, Tuir, as well as those for which the right to obtain them from third parties is conferred.|
|Households||They must relate to residential property owned or held, on the basis of an appropriate title, by the employee, his spouse or family members, regardless of whether or not they have established residence or domicile, provided that they actually bear the relevant expenses. Utilities may also be included:
· those for domestic use in the name of the condominium and which are then shared among the condominium owners (for the share borne by the individual condominium owner)
· those for which, although the utilities are in the name of the owner of the property (landlord), the lease contract expressly provides for a form of analytical and not lump-sum charge payable by the employee (tenant) or his spouse and family members, provided that these persons actually bear the relevant costs (the landlord reimbursed for the costs incurred for utilities may not, in turn, benefit from the relief for the same expenses which, since they are reimbursed, cannot be considered as actually incurred).
· The employer must:
· acquire and keep, for possible checks, the relevant documentation to justify the amount spent and its inclusion in the limit provided for, in compliance with the rules on privacy; or
· alternatively, it may acquire a declaration in lieu of affidavit, pursuant to Presidential Decree no. 445 of 2000, in which the requesting worker certifies that he/she is in possession of the documentation proving the payment of household utilities, and in which he/she provides the elements necessary to identify them, such as, for example, the number and holder of the invoice (and, if different from the worker, the relationship with the latter), the type of utility, the amount paid, the date and method of payment.
In both cases, it is advisable to obtain a declaration in lieu of affidavit attesting to the fact that the same invoices have not already been the subject of a request for reimbursement, in whole or in part, not only from the same employer, but also from others.
This is without prejudice to the fact that all the documentation indicated in the substitute
declaration must be retained by the employee in the event of a control by the tax authorities.
The expenditure justification may also be represented by several invoices and is valid even if
the same is in the name of a person other than the employee, provided that it is in the name
of the spouse or family members indicated in Article 12, Tuir or, under certain conditions (i.e.
in the case of an analytical chargeback), the lessor.
The amounts paid (in the year 2022 or by 12 January 2023) may also refer to invoices to be issued in 2023, provided they relate to consumption in 2022.
|Exceeding the maximum limit||If, on reconciliation, the value of the goods or services provided, as well as the sums paid or reimbursed for the payment of household utilities, exceeds €3,000, the entire amount paid is taxed again, from the first euro (the €3,000 is not an exemption).|
|Extended cash principle||Sums and values paid before 12 January of the tax period following the one to which they relate are also deemed to have been received in the tax period (so-called extended cash principle). Benefits paid by means of vouchers are deemed to be received at the time they become available to the employee, even if the service is used later.|
|Relationship with the fuel bonus
200 + 600
|The €3,000 scheme (Article 51(3), Tuir), limited to the 2022 tax year, is an additional, different and autonomous facilitation with respect to the fuel bonus. Therefore, in 2022, the goods and services provided to each employee may reach a value of €200 in petrol vouchers (fuel bonus) and €3,000 for all other goods and services (including any additional petrol vouchers), as well as for sums paid or reimbursed for the payment of household utilities.
If the fuel bonus exceeds €200, it becomes fully taxable and is subject to ordinary taxation even if the employee has chosen to replace the performance bonuses with the bonus in question and/or with fringe benefits. In other words, even in the context of performance bonuses, if the value of the goods supplied (including those relating to the fuel bonus), the services rendered and the sums paid or reimbursed for the payment of household utilities, is greater than the respective (and distinct) limits set by the reference rules (€3,000 for the temporary regime of Article 51, paragraph 3, Tuir, and/or €200 for the fuel bonus), each value, in its entirety, will be subject to ordinary taxation.
Subject: AGILE WORKING COMMUNICATIONS ON 1 JANUARY 2023
The Ministry of Labour informs, with news dated 24 November 2022, that, considering the need to ensure that all obliged and qualified entities have the opportunity to adapt to the modalities defined by Ministerial Decree 149/2022, in order to fulfil the communication obligations provided for by Article 23, paragraph 1, Law 81/2017, the deadline for compliance set for 1 December 2022 is understood to be postponed to 1 January 2023.
In addition, as of 15 December 2022, an alternative mode will be made available for the mass submission of agile work communications through the computer application, which will allow, by means of an excel file, to fulfil the aforementioned obligations in a simpler and faster manner.
Subject: PENALTIES FOR MANDATORY COMMUNICATIONS AND MAXIMUM DISMISSAL OF ILLEGAL WORK
INL, in its opinion no. 2089 of 2022, provided clarifications on the application of the sanction on ordinary employment in the event of a maxisanction.
The Inspectorate, first of all, recalls how Article 3, paragraph 3-quinques, of Law Decree no. 12 of 2002, includes among the sanctions not to be applied, in the event of simultaneous imposition of the maxisanction, those provided for by Article 19, paragraph 3, of Legislative Decree no. 276 of 2003.
The provision in question also sanctions, inter alia, the omitted notice of termination and this sanction too will not be applied in the event of contestation of the maximum fine: however, the violation referred to the omitted notice of termination may be deemed to be absorbed only in the event the relationship subject to assessment was carried out from the beginning to the end completely “off the books”.
On the other hand, when the employment relationship started irregularly and, subsequently, continued regularly until its conclusion – and was therefore “discovered” also as a result of the inspection – the omission to notify the subsequent termination of the relationship will be punishable pursuant to Article 21, Law 264 of 1949.
Subject: 50% CONTRIBUTION EXEMPTION IN FAVOUR OF WORKING MOMS
The Inps, with message no. 4042 of 2022, has provided further operational indications concerning the exemption from the payment of social security contributions, at the rate of 50%, for employed mothers in the private sector, starting from the date of their return to the workplace after taking compulsory maternity leave and for a maximum period of one year from the date of such return provided for by Article 1, paragraph 137, Law no. 234 of 2021.
The Institute has specified that:
- the relief in question is applicable from the date of the worker’s actual return to work, provided that the same occurs between 1 January 2022 and 31 December 2022. Possible causes postponing the actual return to work (such as, by way of example, holidays, illness, paid leave), provided that they are placed, similarly to what has been specified above, without interruption with respect to the compulsory leave, determine the postponement of the starting date of the dies a quo, provided that the return occurs by 31 December 2022;
- the exemption in question must be calculated from the date of actual return. In the case of inter-monthly returns, the exemption, in the last month in which it is due, must be calculated up to the date of expiry of the statutory relief year. The determination of the portion of taxable income subject to relief, in the case of inter-monthly returns, must be made in relation to the events occurring in the month of return;
- the exemption in question may be cumulated with the contribution exemptions provided for by the legislation in force concerning the employer’s contribution. Cumulation is allowed with the exemption on the portion of social security contributions Ivs payable by the worker, provided for the year 2022 to the extent of 0.8 percentage points for the period from January 2022 to June 2022 and 2 percentage points for the period from July 2022 to December 2022. The aforementioned cumulability operates on the entire amount of the employee’s contribution.
The firm remains at your disposal for any further clarifications.